FINAL BILL REPORT

SSB 5588

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Sponsors: Senate Committee on Environment, Energy & Technology (originally sponsored by Senators Hawkins, Palumbo, Ericksen, Van De Wege, Fortunato, Short, Billig, Hobbs, Braun, Takko, Warnick, Sheldon, Wagoner, Hunt, Das, Zeiger, Wellman, King, Nguyen, Hasegawa, Kuderer, Bailey, Rivers, Holy, Wilson, L., Padden, Walsh, Dhingra, Frockt, Keiser, Liias, O'Ban and Wilson, C.).

Background: Public Utility Districts. Formed in 1931 by Initiative 1, Public Utility Districts (PUDs) are municipal corporations authorized to provide electricity, water and sewer services, and wholesale telecommunications. There are 28 operating PUDs in Washington, 23 of which provide electricity, 19 provide water or wastewater services, and 13 provide wholesale broadband telecommunications services. PUDs are not generally subject to the jurisdiction of the Utilities and Transportation Commission.

In 2007 the Legislature granted PUDs the authority to produce and distribute biodiesel, ethanol, and ethanol blend fuels. PUDs were also authorized to enter into crop purchase contracts for dedicated energy crops for the purpose of generating electricity or producing biodiesel from Washington feedstocks.

In 2015 the Legislature granted PUDs the authority to produce and use renewable natural gas (RNG) for internal operations. Additionally, PUDs may generally sell RNG delivered into a gas transmission pipeline located in the state, or in pressurized containers under specified conditions.

Summary: PUDs are authorized to produce and use renewable hydrogen (RH) for internal operations. PUDs may generally sell RH delivered into a gas transmission pipeline located in the state, or in pressurized containers under specified conditions.

Additionally, PUDs may sell RH at wholesale or to an end-use customer in pressurized containers directly from RH production facilities to facilities for a manufacturing process, where RH is used as a nonutility-related input.

RH is defined as hydrogen produced using renewable resources both as the source for the hydrogen and the source for the energy input into the production process.

Renewable resource is defined as water; wind; solar energy; geothermal energy; RNG; RH; wave, ocean or tidal power; biodiesel fuel; or biomass energy.

Votes on Final Passage:

Senate	47	0
House	97	0